Govt outlines removal of claims-handling exclusion

The Federal Government has explained how it will remove the exclusion of insurance claims-handling from the Corporations Act and make it a defined ‘financial service’.

The Assistant Treasurer, Stuart Robert has told a conference of general insurers that the process will involve first removing the current exemption for claims handling from the financial services which will then have the effect of ensuring that the handling and settling of an insurance claim will be defined as a new financial service for the purposes of the Corporation Act.

“This is intended to bring the claims handling process within the definition of a financial service while mitigating any unintended consequences,” he said.

Related News:

Robert said that the Government’s move was consistent with the recommendations of the Royal Commission and that the Government supported the regulation of insurance claims handling as a financial service under the Corporations Act.

“This will allow the Australian Securities and Investments Commission (ASIC) to enforce a higher standard of behaviour in the industry and ensure consumers can expect the same standard from insurers handling claims as they can from all financial service providers,” he said. “However, the Government acknowledges the industry’s concerns about the removal of the exemption. For example, some claims handling staff may be deemed as providing personal financial advice.”




Related Content

ASIC gets product intervention power

In what represented one of the last legislative act of the current Parliament, the Australian Securities and Investments Commission (ASIC) has been ha...Read more

When indexed IP policy pay-outs exceed actual earnings

Many indexed income protection policies are paying out more than people are actually earning and this, in turn, is impacting claims experience, accord...Read more

Advisers give OnePath underwriting engine tick of approval

Advisers have given OnePath’s life insurance underwriting engine their tick of approval after ranking their experience a Net Promoter Score (NPS...Read more




Wonder if this will stop the greedy lawyers charging crazy fee's for insurance claims?

Handling claims is I believe, the most important part of our Practice's Client Value Proposition. Please, do not make this important role complex for us or our clients. The last thing an ill, or even dying person, or a grieving family member needs is a process that is hard for them to understand. Let's keep it simple.

Add new comment